Indonesia strengthens its clean energy and EV collaboration with South Korea, expanding investment and sustainability efforts in the green sector.
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| Indonesia expands its clean energy and EV partnership with South Korea, focusing on investment, battery production, and sustainable aviation fuel development. Image: ANTARA/HO-Coordinating Ministry for Economic Affairs |
Jakarta, Indonesia — March 23, 2025:
Indonesia is expanding its clean energy and electric vehicle (EV) collaboration with South Korea to accelerate investment and meet its goal of reducing greenhouse gas emissions by 31.89 percent by 2030.
Coordinating Minister for Economic Affairs Airlangga Hartarto met with Dong Choon Kim, Vice President of LG Chem and President of LG Chem’s Advanced Materials Company, in Jakarta on Friday to advance cooperation.
"We deeply appreciate LG Group’s support for Indonesia’s EV ecosystem and clean energy initiatives and look forward to strengthening this partnership," Hartarto said in a statement.
Despite challenges such as slowing global EV demand, both sides highlighted Indonesia’s strong potential for industry growth.
Kim acknowledged the Indonesian government’s continued support for LG Group, which has operated in the country’s manufacturing sector for years. He reaffirmed Indonesia’s importance as a strategic partner, particularly in the green industry.
LG Chem plays a key role in the global EV supply chain and, alongside LG Energy Solution and Hyundai, is developing an EV battery cell factory in Karawang, West Java. The first phase, with a 10-gigawatt-hour (GWh) capacity, was completed in 2024, while the second, with a 20 GWh capacity, is underway.
The company also praised Indonesia’s backing of a grand package plan to accelerate investment in the sector.
Beyond EVs, LG Chem proposed working with Indonesia on biodegradable plastics, offering its technology to support development. Hartarto welcomed the proposal, reaffirming the government’s commitment to attracting investment in clean energy projects.
One key initiative involves processing palm oil into sustainable aviation fuel (SAF), an area where Indonesia holds strong potential. LG Chem, which recently developed SAF production in South Korea, expressed interest in collaborating on similar efforts in Indonesia.